India to revive its dying fertilizer units to make India self-reliant in the fertilizer sector.

 

With a view to become self-reliant in urea production, the centre has taken a series of initiatives to boost  Indian fertilizer sector so as to make it available to the farmers during the sowing season.

Government has taken a major decision to infuse Rs 900 crore in Fertilizers and Chemicals Travancore Ltd (FACT)) for its modernization, said the Union Minister of Chemicals and Fertilizers DV Sadananda Gowda.

He said the centre has taken various initiatives to boost fertilizer sector so that an adequate amount of fertilizers could be made available to farmers during the sowing season.

The Minister said under the provisions of New Investment Policy – 2012 and its amendment in 2014, Chambal Fertilizers & Chemicals Limited (CFCL) has set up a Brownfield project at Gadepan, Rajasthan with a production capacity of 12.7 LMT Urea per annum. Here the commercial production started on 1 January 2019, which helped in producing  244.55 LMT indigenous urea in the country during 2019-20.

Government has started reviving the closed fertilizer units of various PSUs including the FCIL at Ramagundam, Talcher, Gorakhpur & Sindri and HFCL unit at  Barauni. This is a Joint Venture of nominated PSUs to set up gas-based fertilizer plants of 1.27 MMTPA capacity each.

Half a dozen fertilizers projects would be commissioned in the coming three years. While Ramagundam project is already under the pre-commissioning stage, three projects including Gorakhpur, Sindri, and Barauni would be commissioned next year, the Minister said.

Source Ministry of chemicals and Fertilizer

The Indian Fertilizers Market is expected to witness a CAGR of 11.9% during the forecast period 2020-2025.

India is the second-largest consumer of fertilizers in the world with an annual consumption of more than 55 million metric tons. Among the various type of fertilizers used in India, Urea is one of the highest consumed fertilizers in the country as a source of Nitrogen. The consumption of Urea in the country as of March 2018 was 29 million tons. DAP is the second majorly consumed fertilizer in the country.

According to the Department of Fertilizers, the total production of Urea in India was 20.7 million metric tons in 2017 and DAP was 14.6 million metric tons in 2017, which was 1.36% higher compared to the previous year.

Fertilizer Situation in India

India today is the third-largest producer of nitrogenous fertilizers in the world only behind China and USA. At present, there are 30 large size units in the country producing urea (as on date 29 are functioning) 21 units produce DAP and complex fertilizers, 5 units produce low analysis straight nitrogenous fertilizers. Besides, there are about 80 small and medium scale units in operation producing single super phosphate (SSP). The total installed capacity of fertilizer production, which was 119.60 LMT of nitrogen and 53.60 LMT of phosphate as on 31.03.2004, has marginally increased to 120.61 LMT of nitrogen and 56.59 LMT of phosphate as on 31.03.2011.

Fertilizer Requirement in India and its forecast.

According to the Department of Agriculture, Cooperation & Farmers Welfare, agriculture production in the country has increased despite the decreasing are under cultivation. The production of rice has reached 110.15 million metric ton in 2017 and wheat production has reached 98.38 million metric ton from 104.41 million metric ton of rice and 92.29 million metric ton of wheat in 2016. Various Initiatives of Government of India, such as Initiative for pulses by providing subsidy fo quality seeds produced, cluster frontline demonstrations through KVKs and so on are also being undertaken under National Food Securit Mission (NFSM) for increasing the production and productivity of pulses in the country.